Torrid Holdings 2026 Q3 Earnings Sharp Net Loss Widens 438.2% to $6.43M

Torrid Holdings reported a significant widening of its net loss in Q3 2026, with results falling well below expectations. The company’s revenue declined 10.8% year-over-year, and no forward guidance was provided, leaving investors with limited insight into future performance.

Revenue

Torrid Holdings’ total revenue for Q3 2026 fell to $235.15 million, reflecting a 10.8% decline from the prior year. Apparel remained the core driver, contributing $213.62 million, while non-apparel and other segments added $12.31 million and $9.23 million, respectively. The decline was attributed to fewer stores and lower sales transactions, underscoring ongoing challenges in physical retail.

Earnings/Net Income

The company’s net loss expanded to $6.43 million in Q3 2026, a 438.2% increase from the $1.19 million loss in 2025 Q3. Earnings per share (EPS) turned negative at -$0.06, compared to -$0.01 in the prior year. The deteriorating profitability highlights the strain of reduced sales and elevated marketing expenses, with the CEO likely emphasizing the need for strategic cost management.

Price Action

CURV’s stock price rose 2.73% on the day of the earnings release but fell sharply in the subsequent week and month. The post-earnings price action reflects investor skepticism about the company’s ability to reverse its declining trend.

Post-Earnings Price Action Review

The strategy of buying CURV following an earnings beat and holding for 30 days yielded no return, underperforming the benchmark by 55.19%. With a Sharpe ratio of 0.00% and zero volatility, the strategy showed no risk-adjusted gains, suggesting a lack of active risk management.

CEO Commentary

The CEO acknowledged the “challenging operating environment,” citing macroeconomic pressures and shifting consumer preferences toward e-commerce. Strategic priorities include accelerating store closures—targeting 100 additional locations—and doubling down on digital transformation. Leadership remains confident in long-term resilience, though near-term profitability remains uncertain.

Guidance

No explicit guidance was provided for future periods during the Q3 2026 earnings call.

Additional News

Torrid Holdings’ Q3 10-Q report revealed a 14.5% reduction in store count to 560 as of November 2025, aligning with its retail optimization strategy. The company plans to close 100 more stores in fiscal 2025, prioritizing e-commerce growth. New product launches, occurring approximately 16 times annually, aim to maintain customer engagement. Operational challenges persist, including higher merchandising costs and marketing expenses, which pressured gross profit margins to 34.9%, down from 36.1% in the prior year.